The Nairobi Securities Exchange (NSE) has reiterated its commitment to introduce a derivatives market by the end of 2016. According to the NSE Board Chairman, Samuel Kimani, the bourse is finalizing plans for launch. “It is our intention to grow into a globally competitive exchange. As such we have been working on a range of new products, key of which is the launch of a derivatives market, the M-Akiba and exchange traded funds”, he said. Kimani was speaking soon after opening the two-day Commodity Trading and Risk Management seminar at the Windsor Golf Hotel and Country Club in Nairobi.The NSE…
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Lack of access to affordable credit has been the greatest hindrance to SME’s and individuals from their full growth potential. Although statistics indicate that the country has made strides towards financial inclusion, high cost of credit is gnawing at these gains. Alex Magu, director of Credit Sawa and a former banker who has been in the industry for over15 years identified this as the Achilles heel towards the country’s economic growth because it is a limiting factor to the participation of key stakeholders in the economy. Of employed individuals, 90% earn their livelihood, whether directly or indirectly, from the SME…
BY NADRAT MAZRUI You happen to find yourself out on a stroll in a certain mall. A new clothing shop catches your eye. You walk in and look about. By chance you spot a unique piece that would suit your spouse/child/sibling/friend. Taking a rough guess you estimate a size and purchase it. Upon gifting it to its designated owner it happens to be a size too small or a size too big. Too big, not so bad they can grow into it. Too small, a bummer! You then notice it’s not actually small it’s the zip that just won’t close.…
BY JARED JUMA Majority of us will relate closely with this example or scenario. You are sipping water from a bottle you carried from home or from a supermarket. You have been sipping it all day and you need to enter a restaurant when suddenly the personnel at security desk decline to allow you in with it. “We don’t allow drinks from outside mum,” you are politely reminded. At times, there is very little quantity of the liquid remaining in the bottle, an amount you can even flush down your throat in a single gulp but they will disallow your…
BY IAN ONDAR Domestic uptake of insurance products has been low. A recent study report by Cytonn Investments puts insurance penetration at 3%. This is despite the projected growth as a result of increased consumer confidence due to the rigorous policy reforms by the regulatory authority. The rapid penetration of mobile connectivity has resulted in a dynamic shift in several key industries, from the disruption of conventional banking models to expediting service delivery by government and its agencies. The key drivers of this transformation have been identified to include product innovation, an insatiable demand by the incipient middle class, bancassurance…
BY DAVID WANJALA Islamic finance is increasingly making major inroads into mainstream banking in Kenya, giving customers a range of products and effectively deepening financial inclusion. This growth is causing major realignments in the financial services sector, bringing with it regulatory changes and huge investments as banks scramble for a slice of the lucrative niche segment. To demystify this banking model, NBM spoke to Jaafar Abdul, head of Islamic Banking at KCB Bank Kenya and chair of the Kenya Bankers Association sub-committee of Islamic Finance. NBM: What is Islamic Finance Jaafar: Islamic finance is a financing model that operates on…
By Dr Kellen Kiambati In majority of liberal democratic political systems, the Legislature is one of the core three arms of government. The other two are the Executive and the Judiciary. As nominated representatives of the people, legislators are at the heart of the democratic system. They represent the electorate from whom the armed forces are drawn and whose taxes pay for their upkeep. Legislature helps to clarify and justify military expenditure and why military personnel are deployed overseas. The discussion on Legislature oversight in defence matters will be focused on four main aspects thus: the role of legislature in…
By Victor Adar Ranked second behind South Africa for clean energy investment in Africa and sixth globally, Kenya’s search for cleaner energy spells her a new dawn. It is all of excellent wind, solar and geothermal resources alongside a government and business community that are committed to continuing industrial growth. Although the potential is vast, we still have a long way to go as far as large-scale renewables is concerned. At a panel briefing and networking reception held on June 9 at a Nairobi hotel where some of the industry’s thought-leaders came together for an informative session on the opportunities,…
Commercial Bank of Africa (CBA) has partnered with MHH International to offer customers an easy and convenient way to import luxury vehicles from both Japan and UK. Through this partnership CBA clients can receive up to 80% asset financing, while also accessing services of a reliable partner who will transform the buying experience for imported cars into a pleasurable, effortless experience. “We have noted a growing appetite for high quality and reliable cars, as it becomes a priority for more Kenyans for both business and personal needs. We are supporting our customers by developing this end to end partnership with…
Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises was recently elected as the Chairman of the International Chamber of Commerce (ICC), becoming the third Indian business leader to hold this prestigious position in the body’s near – 100 year history. Founded in 1919, ICC is the world’s largest business organization which represents private-sector views to national governments and intergovernmental bodies around the world. It advocates for free trade and the market economy, working through a network of national committees and direct members in over 130 countries. On the other hand, the organization was awarded the highest level consultative status with the United…